Commodities

Coal India to invest ₹19,650 cr in strengthening rail infra, evacuation capacity

Shobha Roy | | Updated on: Nov 30, 2021
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The upcoming projects would help CIL despatch increased volumes via rail.

Coal India Limited (CIL) is looking to invest an estimated sum of ₹19,650 crore for strengthening its rail infrastructure to ramp up coal evacuation capacity by an additional 330 million tonnes (mt) annually by 2024. This would be crucial when the state-owned miner would be enhancing production capacity moving forward.

The upcoming projects, some of which are already operational, would help CIL despatch increased volumes of coal through rail, above the existing capacity, from its greenfield and brownfield mining areas, the company said in a press statement.

On a deposit basis, CIL is constructing three important railway lines from its own funds in CCL and MCL at an estimated capital of ₹ 7,994 crore with 170 mt per annum coal transportation capacity. Additionally, the company has forged four rail joint ventures with Chattisgarh, Jharkhand and Odisha at a capital outlay of ₹11,656 crore which would help move 160 mt per annum of coal.

“These rail infra projects would boost our evacuation. It is important to have a robust coal transport mechanism in place to cope up with increased volumes of production in the ensuing years. We are laying the groundwork for it,” a senior company executive said in the release.

Around 69 per cent of CIL’s overall coal output is expected from CCL, MCL and SECL by FY-25. In these fields the company is aggressively laying the foundation for evacuation infrastructure.

The doubling of the Tori-Shivpur (CCL) rail line was already commissioned in December 2019. The tripling of the line under process shall enhance evacuation capacity to 100 mt from the existing 32 mt.

The Jharsuguda-Barpali-Sardega (MCL) single line was commissioned in April 2018. The construction work for doubling the line along with loading bulb at Barpali and a flyover complex at Jharsuguda are under progress. Dovetailing of FMC projects of Sardega 20 mt and Lajkura 15 mt to this rail connectivity would also lift MCL’s transportation capacity by 65 mt per annum.

The four rail JVs are in various stages of progress with the main rail corridor of Kharsia to Dharamjaigarh, a 74 KM stretch under CERL in SECL already operational. CIL holds a 64 per cent stake in these JVs, with the rest 36 per cent made up by the rail PSUs and respective states.

CIL’s rail transportation from its own sidings currently accounts for 56 per cent of its total supplies. If loading from goods sheds, private washeries and MGR is also considered then the percentage of rail movement of coal is close to 79 per cent.

Published on November 30, 2021

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